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The Central Bank of Nigeria (‘’CBN’’) by a letter dated 9th January 2023, observed that several institutions in the Other Financial Institutions (‘’OFIs’’) sub-sector, have large assets invested in various funds managed by uninsured entities, and often disguised as placement/investments in Banks and OFIs.
The continuous investment by these OFIs with uninsured entities have undoubtedly put depositors’ funds at risk, consequently prompting the intervention of the CBN.
In keeping with its mandate to regulate the activities of Banks and OFIs, the CBN directed the OFIs to divest of such investment which have been made with the uninsured entities and liquidate same within a 90-day window, sequel to the issuance of this letter.
We commend CBN’s intervention in this regard and do hope that the OFIs would comply accordingly in a bid to ensure that depositors’ fund is duly protected.
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